Sun Communities (SUI) AI Stock Analysis

• Market Cap: $15.86B
• Dividend Yield: 6.21%
• Average Volume (3M): 624.53K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.18
• Revenue Growth: -20.69%
• EPS Growth: 330.60%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.07
• Shares Outstanding: 123,668,390
• 10 Day Avg. Volume: 501,270
• 30 Day Avg. Volume: 624,530
• PEG Ratio: -1.22
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 17.23
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 7.78
• Enterprise Value/Gross Profit: 16.89
• Enterprise Value/Ebitda: 50.33
• 1Y Price Target: $138.11
• Price Target Upside: 7.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 10.56
• Revenue Forecast (FY): $2.22B

• Rating: 72 Outperform
• Price Target: $142.00 ▲(10.74% Upside)

Sun Communities' overall stock score is driven by strong earnings performance and strategic financial moves, such as the new credit agreement. While the company shows strong profitability and a solid balance sheet, challenges in revenue growth and cash flow generation, along with sector-specific issues in the RV and U.K. markets, temper the outlook. The technical analysis supports a moderately bullish view, and the valuation is attractive for income investors.

Positive Factors

Strong North American Performance

The robust NOI growth in North America, especially in manufactured housing, indicates strong demand and effective management, supporting long-term revenue stability.

Healthy Balance Sheet

A solid balance sheet with manageable debt levels and strong equity returns provides financial stability and flexibility for future growth initiatives.

Guidance Increase

The increase in FFO guidance reflects confidence in operational performance and strategic initiatives, indicating potential for sustained earnings growth.

Negative Factors

Decline in Revenue Growth

Negative revenue growth indicates potential challenges in maintaining market share or pricing power, which could impact long-term profitability.

Decline in Transient RV Revenue

The decline in transient RV revenue suggests potential issues in adapting to market demands, which may affect overall revenue diversification and growth.

Cash Flow Challenges

Negative free cash flow growth could limit the company's ability to invest in new projects or return capital to shareholders, impacting long-term financial health.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. (SUI) is a leading real estate investment trust (REIT) that focuses on the ownership, operation, and development of manufactured housing and recreational vehicle (RV) communities across the United States and Canada. The company operates a portfolio of over 400 properties, providing affordable housing options and vacation destinations. Sun Communities emphasizes delivering quality living experiences through community amenities and services, catering primarily to families, retirees, and seasonal residents.

How the Company Makes Money

Sun Communities generates revenue primarily through the leasing of residential lots within its manufactured housing and RV communities. Key revenue streams include rental income from long-term residents who lease lots for their manufactured homes, as well as short-term rental income from visitors to its RV parks. Additionally, the company earns revenue from property management services, sales of manufactured homes, and ancillary services such as utility billings and retail operations within its communities. Significant partnerships with home manufacturers and seasonal rental agencies also contribute to its earnings, enhancing its capacity to attract residents and visitors alike.

Sun Communities Financial Statement Overview

Summary

Sun Communities presents a mixed financial picture. The income statement shows strong profitability but declining revenue and operational challenges. The balance sheet is solid with a healthy debt-to-equity ratio and strong return on equity, indicating financial stability. Cash flow analysis reveals some concerns with declining free cash flow, but cash generation relative to net income remains adequate. Overall, while the company is profitable and financially stable, it faces challenges in revenue growth and cash flow generation.

Income Statement

Sun Communities shows a mixed performance in its income statement. The TTM data reveals a significant net profit margin of 40.55%, indicating strong profitability. However, the revenue growth rate is negative, suggesting a decline in revenue compared to the previous period. The gross profit margin is healthy at 59.36%, but the EBIT margin is negative, which could indicate operational inefficiencies or high non-operating expenses. Overall, while profitability is strong, the declining revenue and negative EBIT margin are concerns.

Balance Sheet

The balance sheet of Sun Communities reflects a stable financial position with a debt-to-equity ratio of 0.61 in the TTM, which is a positive sign of manageable leverage. The return on equity is robust at 14.34%, indicating effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity position appears strong relative to its assets. Overall, the balance sheet shows a good balance between debt and equity, with a strong return on equity.

Cash Flow

Cash flow analysis indicates some challenges for Sun Communities. The free cash flow growth rate is negative, suggesting a decline in cash generation capabilities. However, the operating cash flow to net income ratio is 0.26, and the free cash flow to net income ratio is 1.0, indicating that the company is generating sufficient cash relative to its net income. Despite the negative growth in free cash flow, the company's cash flow ratios suggest a reasonable conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51B	3.20B	3.18B	2.93B	2.26B	1.38B
Gross Profit	1.16B	1.50B	1.49B	1.42B	1.15B	768.90M
EBITDA	388.00M	1.10B	771.60M	1.11B	1.10B	666.70M
Net Income	1.02B	89.00M	-213.30M	242.00M	380.20M	131.61M
Balance Sheet
Total Assets	12.80B	16.55B	16.94B	17.08B	13.49B	11.21B
Cash, Cash Equivalents and Short-Term Investments	542.70M	47.40M	29.20M	200.10M	252.70M	202.07M
Total Debt	4.27B	7.35B	7.78B	7.13B	5.60B	4.69B
Total Liabilities	5.69B	9.36B	9.77B	9.20B	6.76B	5.58B
Stockholders Equity	6.99B	7.08B	7.08B	7.81B	6.62B	5.53B
Cash Flow
Free Cash Flow	828.70M	888.80M	807.90M	752.20M	770.50M	554.03M
Operating Cash Flow	828.70M	888.80M	807.90M	752.20M	770.50M	554.03M
Investing Cash Flow	5.27B	-295.20M	-935.00M	-3.08B	-2.35B	-2.50B
Financing Cash Flow	-5.00B	-571.60M	78.40M	2.35B	1.57B	2.00B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 128.23 is above the 20-day moving average (MA) of 127.14, above the 50-day MA of 125.86, and above the 200-day MA of 123.65, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 46.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	72 Outperform	$15.86B	16.05	-5.55%	6.21%	-20.69%	330.60%
MAA	71 Outperform	$15.82B	27.90	9.41%	4.60%	0.91%	6.55%
ESS	70 Outperform	$17.02B	19.42	15.30%	3.98%	6.92%	53.76%
AMH	69 Neutral	$11.44B	26.15	6.36%	3.76%	7.63%	23.16%
ELS	67 Neutral	$12.39B	32.31	24.00%	3.28%	0.61%	2.42%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CPT	60 Neutral	$14.66B	42.01	5.79%	3.96%	1.41%	-21.93%

Sun Communities Corporate Events

Sun Communities Releases Investor Presentation December 2025

Sun Communities, Inc. announced an investor presentation available from December 1, 2025, highlighting its financial and operational performance. The company faces various risks, including market volatility, interest rate increases, and challenges in acquisitions and expansions, which could impact its future results and stakeholder interests.

Sun Communities Enters New $2 Billion Credit Agreement

On September 17, 2025, Sun Communities, Inc. entered into a new Credit Agreement with several financial institutions, replacing its existing $3.05 billion credit facility. The new agreement allows for borrowing up to $2 billion with potential additional borrowings of $1 billion, extending the maturity date to January 31, 2030. This strategic financial move is expected to enhance the company’s financial flexibility and support its growth initiatives.